What You Need to Know about Financial Aid

1. What You Need to Know about Financial Aid

2. Topics We Will Discuss Tonight • What is financial aid • Cost of attendance (COA) • Expected Family Contribution (EFC) • What is financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

3. What is Financial Aid? Financial aid consists offunds provided to students and families to help pay for postsecondary educational expenses

4. What is Cost of Attendance (COA) • Direct costs • Indirect costs • Direct and indirect costs combined into cost of attendance • Varies widely from college to college

5. What is the Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Stays the same regardless of college • Two components • Parent contribution • Student contribution • Calculated using data from a federal application form and a federal formula

6. What is Financial Need Cost of Attendance –Expected Family Contribution = Financial Need

7. Categories of Financial Aid • Need-based • Non-need-based

8. Types of Financial Aid • Scholarships • Grants • Loans • Employment

9. Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill, or unique characteristic

10. Grants • Money thatdoes not have to be paid back • Usually awarded on the basis of financial need

11. Loans • Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future

12. Employment Allows student to earn money to help pay educational costs • A paycheck; or • Non-monetary compensation, such as room and board

13. Sources of Financial Aid • Federal government • States • Private sources • Civic organizations and churches • Employers

14. Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA)

15. Federal Pell Grant Teacher Education Assistance for College and Higher Education Grant Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study Subsidized and Unsubsidized Loans PLUS Loans Common Federal Aid Programs

16. Private Sources • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching private aid sources early

17. Civic Organizations and Churches • Research what is available in community • To what organizations and churches do student and family belong? • Application process usually spring of senior year • Small scholarships add up!

18. Employers • Companies may have scholarships available to the children of employees • Companies may have educational benefits for their employees

19. Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form • Available in English and Spanish

20. FAFSA • Information used to calculate the Expected Family Contribution or EFC • The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year • Colleges use EFC to award financial aid

21. FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2013–14 academic year, the FAFSA may be filed beginning January 1, 2013 • Colleges may set FAFSA filing deadlines

22. FAFSA on the Web • Website: www.fafsa.gov • 2013–14 FAFSA on the Web available on January 1, 2013 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

23. IRS Data Retrieval • While completing FOTW, applicant may submit real-time request to IRS for tax data • IRS will authenticate taxpayer’s identity • If match found, IRS sends real-time results to applicant in new window • Applicant chooses whether or not to transfer data to FOTW

24. IRS Data Retrieval • Available early February 2013 for 2013–14 processing cycle • Participation is voluntary • Reduces documents requested by financial aid office

25. Federal Student Aid Personal Identification Number (FSA PIN) • Website: www.pin.ed.gov • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

26. FAFSA on the Web Worksheet 2013–14 FAFSA on the Web Worksheet—4-page booklet containing: • Instructions • 22 questions in 4 sections

27. FOTW Worksheet: Section 1 General student information: • Social Security Number • Citizenship status • Drug convictions • Selective Service registration

28. FOTW Worksheet: Section 2 Student’s dependency status: • If all “No” responses, student is dependent • If “Yes” to any question, student is independent

29. FOTW Worksheet: Section 3 Information about the parents of dependent students: • Tax, income, and other financial information • Dislocated worker status • Assets

30. FOTW Worksheet: Section 4 Information about the student (and spouse): • Tax, income, and other financial information • Dislocated worker status • Assets

31. Additional Information • College and housing information

32. Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

33. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

34. FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided

35. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA • Student with PIN may view SAR on-line at www.fafsa.gov

36. FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews ISIR • May request additional documentation, such as proof that a sibling is enrolled in college

37. Student Aid Report • Review data for accuracy • Update estimated information when actual figures are available

38. Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office

39. Special Circumstances • Cannot report on FAFSA • Send written explanation to financial aid office at each college

40. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parent information

41. Dakota Corps Scholarship Program: http://www.state.sd.us/dakotacorps/default.html • Graduate from an accredited South Dakota high school with a Grade Point Average (GPA of) 2.8 or greater on a 4.0 scale.  • Have a composite ACT score of 24 or greater (or the SAT equivalent). • Agree, in writing, to stay in South Dakota and work in a critical need occupation after graduation for as many years as the scholarship was received, plus one year. • Apply for the Dakota Corps Scholarship for a school period that begins within one year of high school graduation, or within one year of release from active duty of an active component of the armed forces.   • Attend a participating South Dakota college as an undergraduate student in a program that will prepare the student to work in a critical need occupation. • Be a U.S. citizen or U.S. national.

42. South Dakota Opportunity Scholarship: http://www.sdbor.edu/OpportunityScholarship/sdos.htm • Being designated as a Regents Scholar does not automatically qualify the student for the South Dakota Opportunity Scholarship (SDOS). • Reminder – To establish initial eligibility, the student must complete an application form and submit it to the college he or she will attend. • 2010 Legislative changes were made to the statute for SDOS. • New set of curriculum requirements for those students entering high school after July 1, 2010. • Students need to meet credit hour thresholds (30, 60, and 90) each year rather than complete 15 credit hours each term.

43. SDEAF Grant • South Dakota Education Access Foundation Grant • www.sdeducationaccess.org • Participating South Dakota colleges implemented SDEAF Grant in 2009-2010 • Funding for the SDEAF grant is made possible through South Dakota Education Access Foundation • Mission – To expand access to postsecondary education • Each college submits a proposal to the SDEAF Board as to how these awards will be made to their students Information provided by: